Chinese President Xi Jinping made a detailed pitch for globalisation, liberalised trade and shared economic growth on the Asia-Pacific Economic Cooperation‘s sidelines in Peru on Friday, drawing a sharp contrast with the US as it turns increasingly inward.
While Donald Trump was not mentioned by name in the 20-minute speech delivered at the CEO summit, the American president-elect’s expected global impact was the clear subtext, as it has been throughout the week.
Trump has been the main topic of conversation at the sessions and in hallway chatter centred on his threats to impose tariffs of up to 20 per cent on all imports and 60 per cent on Chinese goods.
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“The world is entering a phase of rapid transformation marked by increasing protectionism, geopolitical tensions and challenges to globalisation,” said Xi in remarks read out by Chinese Commerce Minister Wang Wentao.
“These challenges test our ability to foster economic cooperation and navigate the structural demands of growth and development.”
Chinese Commerce Minister Wang Wentao read the speech for Xi in Lima, Peru, on November 15, 2024. Photo: Reuters alt=Chinese Commerce Minister Wang Wentao read the speech for Xi in Lima, Peru, on November 15, 2024. Photo: Reuters>
Despite the headwinds and setbacks, Xi argued, economic globalisation remained an unalterable trend. The Chinese leader said that to block globalisation and promote isolationism with “all sorts of excuses” would be “nothing but back-pedalling”.
Growth must be inclusive, dynamic and sustainable, he added, rather than benefiting “a few countries” – an unmistakable reference to the US and the potential erosion of its leadership under an “America-first” Trump administration.
“Tougher times call for greater confidence,” Xi said, calling for “further economic globalisation down the road”.
Ren Hongbin, chairman of the China Council for the Promotion of International Trade, delivered a similar message during the event.
Speaking as part of a panel on Asia-Pacific economic integration, Ren emphasised the multilateral nature of forums like Apec and the importance of opposing “any form of protectionism and unilateralism in order to be open and inclusive.”
“We have to stand up against protectionism. This rhetoric of ‘decoupling and de-risking‘ is actually aimed at the artificial separation of supply chains,” he said, referring to terms often used in the West to justify reducing trade relations with China.
Ren also advocated promoting infrastructure development alongside “policies, legislation and standardisation of rules” to facilitate and coordinate economic growth, citing the Belt and Road Initiative as an example of China’s progress on both fronts.
Beijing’s message targeted more than 1,000 senior executives, bankers, experts and government officials in Lima at a time when America, by electing Trump and giving his Republican Party control of the US Congress, has taken an insular turn.
In addition to highlighting China’s vision of global leadership, Xi sought in his speech to reassure the business community that his country’s economic and financial problems were manageable and that fixes were under way.
The speech in Peru’s stately Grand National Theatre where the two-day CEO summit has been held, echoed Xi’s pitch for China’s global economic leadership at the World Economic Forum in Davos, Switzerland, days before Trump’s first term.
Eight years ago, Xi signalled Beijing’s intention to take up the mantle of globalisation, although intensifying Sino-American trade battles during Trump’s first term as president and China’s wolf-warrior diplomacy stymied that effort.
In a related overture on Friday, Xi urged the business community to “join hands” in inclusive growth for all and embrace tech innovation, including artificial intelligence, science and technology, saying they were vital to drive the “entire global community”.
Jose Javier Tam Perez, president of the Lima-based Peruvian-Chinese Chamber of Commerce, said Xi’s speech – along with his inauguration of Chancay port on Thursday and a host of signed trade agreements – had made a strong impression.
“He is telling the world that China is for free trade and global trade and not for protectionist measures. That was very inspiring,” said Tam Perez, who added that the country was assuming “leadership for the future of the world”.
Xi pictured after speaking at the World Economic Forum in Davos, Switzerland, on January 15, 2017. Photo: AP alt=Xi pictured after speaking at the World Economic Forum in Davos, Switzerland, on January 15, 2017. Photo: AP>
On other fronts, Xi urged economies to pursue global rules and economic cooperation, drawing another distinction with Trump’s well-known distrust of multilateralism.
The Chinese leader advocated upholding World Trade Organization protocols, maintaining the stability of supply chains and halting a trend in many countries in which “the rich get richer and the poor get poorer”.
Xi noted that Apec, 35 years in operation, emerged at the end of the Cold War and said China would lead by example in promoting development “for all countries”.
This would ensure that the Asia-Pacific region maintains a robust record of growth for “another 30 years of prosperity”, he said.
Beijing has frequently accused the US of pursuing a new Cold War, citing its high tariffs and sanctions.
The charge comes as Trump’s team has indicated that China hawks will lead the coming administration’s foreign-affairs team, including US senator Marco Rubio as secretary of state and US congressman Mike Waltz as national security adviser.
As far back as February 2023, Waltz has accused China of pushing the US “into a new Cold War”. Because of China’s growing military, economic and technological might, Waltz said, “we cannot just assume we will win this time”.
US congressman Michael Waltz, a Florida Republican, at the Republican National Convention in Milwaukee, Wisconsin, on July 17, 2024. Waltz is president-elect Donald Trump’s pick for US national security adviser. Photo: Reuters alt=US congressman Michael Waltz, a Florida Republican, at the Republican National Convention in Milwaukee, Wisconsin, on July 17, 2024. Waltz is president-elect Donald Trump’s pick for US national security adviser. Photo: Reuters>
Xi in his remarks said Beijing adopted some 300 measures at its third plenum in July, vowing these would be implemented within the next five years. He voiced confidence that the country would achieve its target of “around 5 per cent” economic growth.
As China’s economy faces stronger headwinds amid growing local debt, a property crisis, weak consumer confidence and industrial demand, global doubts have risen even with Beijing’s multitrillion dollar stimulus package announced this month.
In October, a Reuters survey estimated that actual growth this year would be 4.8 per cent and 4.5 per cent in 2025.
Describing China as increasingly open, Xi pointed to its foreign investment negative list, approved in August. The list aims to remove restrictions on foreign investment in manufacturing and ease barriers in telecommunications, education and healthcare.
Xi also pledged ongoing reforms to China’s tax system, a more unified market, urbanisation and domestic demand.
Beijing will continue to contribute significantly to global growth by supporting the service sector, he added, modernising infrastructure, improving supply chains and bolstering global logistics.
In the future, China would “open its doors even wider” in the interest of common prosperity and a “brighter future for the world and for humanity”, Xi said. “Opening up is a defining feature of China.”
US Secretary of State Antony Blinken speaks during the Apec CEO summit in Lima, Peru, on November 15, 2024. Photo: AFP alt=US Secretary of State Antony Blinken speaks during the Apec CEO summit in Lima, Peru, on November 15, 2024. Photo: AFP>
Speaking a few hours after Xi’s speech, US Secretary of State Antony Blinken pushed back gently at China’s message that it was the global leader on engagement and trade liberalisation.
But the remarks by America’s top diplomat were decidedly retrospective as he prepares to step down in two months and see Rubio replace him.
Blinken touted trade and revitalisation efforts by the Joe Biden administration over the past four years to build alliances in the Asia-Pacific, mentioning America’s hosting last year’s Apec summit in San Francisco.
In a plea to keep moving forward even if Washington mounted a global retreat, Blinken ended his comments encouraging other economies to carry on.
“Your engagement, your leadership, will determine whether we can continue to move toward a stronger, more prosperous, more equitable, more resilient region,” he said.
“We’re counting on all of you, and we’re counting on the partnerships that we built and continue to build, particularly between the public and private sectors, to carry us forward.”
